For many Indian tribes, gaming generates essential government revenue that provides services, builds infrastructure and creates jobs. Without question, it has created economic opportunities for Indian Country and surrounding communities that previously did not exist. Indian Gaming has also managed to succeed where many federal programs have failed. For decades, the federal government tried, with little support, to spur economic growth on reservations. Today, whether it’s through world-class resorts, cattle or agricultural farming, manufacturing companies or restaurant chains, we are seeing huge accomplishments in terms of diversified economies both on and off reservations.
However, for each tribe that succeeds financially, there are many others still struggling to get by. Too many Native people continue to deal with huge economic and social problems that are the vestiges of decades of poverty. Much remains to be done.
To understand the depth of the need that exists, take a careful look at the following data. These statistics were compiled from government and non-government websites, and provide a snapshot of some of the ongoing problems that Indian tribes deal with:
• The average household income of American Indians is 27 percent less than the national average.
• The poverty rate among American Indians is 25.3 percent, compared with the national poverty rate of 12.6 percent.
• Unemployment among American Indians is 9.3 percent, compared with 5.1 percent nationwide. On some reservations, the unemployment rate is higher than most areas of the country.
• The average life expectancy of American Indians is shorter than the national average.
• The incidence of diabetes and high school dropout rates among American Indians are still higher than the national rate.
• Only a small percentage of American Indians have attained a bachelor’s degree or higher in comparison with the general public.
Undisputedly, challenges continue to exist, and they are monumental. Because of these needs, it is important that Indian Gaming be allowed to continue to provide jobs, build communities and give hope. Without it, we would take terrible steps backward as a country. Furthermore, for those tribes fortunate enough to be considered a financial success story, The National Indian Gaming Association, encouraged by supporters in Congress, has continued to call upon you and tribal governments to consider what you can do to help fellow tribes find a similar path to success.
As chair of the National Indian Gaming Association (NIGA), I’ve had the opportunity to visit dozens of reservations. I’ve seen the heart and soul of Indian Country. I’ve seen reservations that thrive thanks to gaming and other business ventures. I’ve also seen the poverty and the struggles so many tribes face due to a lack of revenue.
I know that as Native people, we share a special bond. We know the importance of banding together to stand united on issues and maintain a powerful voice in this country. I see an ocean of differences between tribes that succeed financially and those that don’t, and I am certain we can learn and earn from each other to make that ocean less of a divide.
That’s why earlier this year NIGA made a commitment to bring tribes together to work collectively on improving tribal economic strength. NIGA has taken a lead role in developing a series of economic summits across the country. Our first foray into this program took place with a panel discussion on economic development at Res 2007. It was followed up with a panel of experts discussing the subject at our annual trade show in Phoenix. In fact, the finance and economic development symposium was one of the major highlights of the show.
Our most recent event took place in Washington, D.C., in July. Attendees at our economic summit learned about financial opportunities available to tribes, including bonds and pensions. They also learned more about the Small Business Administration’s 8A program and how they can help forward legislation to improve this struggling program for tribes and tribal members. They learned about organizations like the Inter-Tribal Economic Alliance (ITEA), which is working on their behalf to bring more investment capital to Indian businesses. Attendees also heard from business and tribal leaders who are making a difference for their people about how their experiences can be leveraged on other reservations.
Tex Hall, chair of ITEA, a national nonprofit promoting economic development on rural American Indian reservations, Hawaiian homelands and in Alaska Native villages, shared some of his group’s recommendations for how tribes can work together to foster business development on reservations.
According to Hall, ITEA’s business platform is centered on the creation of new businesses in Indian Country by organizing a series of subsidiary or sister companies in seven business areas. Admission into the ITEA is not limited to tribes; tribal organizations, individuals and non-native investors that share the same vision as the alliance’s founders — of taking risks and making a commitment to raise Native communities out of poverty — are welcome.
The ITEA recently launched the Native Grasslands Beef & Buffalo Company and the Multi-Tribal Enterprise Management Company, a private equity management firm, both of which signal the next level of commitment to investment and jobs in Indian Country.
According to ITEA, the Multi-Tribal Enterprise Management Company is a private equity management fund established to manage large amounts of tribal capital through a series of national investment funds called Multi-Tribal Enterprise Funds. Each fund has a threshold amount of $20 million, and the Multi-Tribal Enterprise Management Company will utilize each fund to invest in businesses, securities, real estate, capital markets and other ventures to provide real investment in Indian Country on a national level, as well as provide tribal investors with a reasonable rate of return on their capital.
Sen. Tom Daschle, the former United States Senate majority leader, is now a leading advocate for the development of renewable energy projects in Indian Country. He also spoke to attendees at the economic summit, offering remarks on the great opportunity for tribes to invest in renewable energy. Tribes across the country are already making advances in wind, ethanol and solar energy, but as Sen. Daschle noted, there is still much more that Indian Country can contribute. By coupling the natural resources that are so often abundant on reservations with its plentiful innovative human resources, Indian Country can continue to help itself and our nation.
I am grateful for the many speakers and experts who have participated in our economic development meetings over the past several months, and I look forward to bringing more opportunities to Indian Country in the future. I thank groups like ITEA that are working for and with Indian Country to strengthen our communities. I commend tribes that are already working in partnership on developments and investments, and I ask you to share your knowledge and experience with others. I truly believe the mindshare we bring to the table is one of the best ways to build partnerships and band together to strengthen our communities for generations to come.
Ernie Stevens Jr. is the Chair of the National Indian Gaming Association and a member of the Oneida Tribe of Indians of Wisconsin. He can be reached at (202) 546-7711.
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